Colt Telecom set for £178m rights issue
11 April 2012
Struggling Colt Telecom is to join the rapidly growing list of companies launching rights issues with a £178 million share sale.
The telecoms group's plans emerged today as it revealed a 17% drop in fourth-quarter profits and warned of a gloomy outlook.
Colt, which is based in Luxembourg, is offering shareholders 31 new shares for every 100 held and wants to sell 210.96 million new shares at yesterday's closing price of 84.5p.
The offer, fully underwritten by two of Colt's largest shareholders, will be used to pay down debt. It is due to pay investors ¤262.2 million (£232.4 million) of outstanding notes at the end of this year.
